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The dairy cliff
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Posted: 12/27/2012 5:06 PM
The dairy cliff
As if the fiscal cliff weren't scary enough, now we have to worry that milk prices might hit $8 a gallon! All because congress can't pass a farm bill. But the broader question I have is what is the government doing offering price supports for dairy farmers. Quote of the piece: "Why do we subsidize dairy as we do? Without them, is this ($8 per gallon milk) the real cost of dairy? If so, that's a conversation we need to have," Cornia said.Exactly. The law dates back to 1949. We live in a very different world than we did then. BC |
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Posted: 12/27/2012 5:42 PM
Re: The dairy cliff
You know the answer, of course.
We have a national legislature that has no political courage. Both sides of the spectrum don't want to touch this nonsense.
Lame.
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Posted: 12/27/2012 6:10 PM
Re: The dairy cliff
Well, the irony is that in this case the failure to act would mean the expiration of a price support that probably shouldn't exist in the first place. So, it might be a rare case of two wrongs making a right; a political failure to agree to pass misguided policy leaves us, in the long run, better off.
My disappointment is more with the how than the what. (And, as an aside, the likely end result is that political pressure from agricultural interests will cause congress to pass the policy eventually, anyways). My issue is that the dairy subsidy should be phased out by a willful act of congress that cuts the price support little by little allowing American consumers and dairy farmers a chance to adjust to the policy changes, ensuring a smooth transition. It shouldn't happen because of the absolute failure of our political system, resulting in an abrupt price increase in dairy products.
BC
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Posted: 12/27/2012 7:11 PM
Hasn't the cost of feed lot gone way up?
NT
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Posted: 12/27/2012 7:15 PM
Re: The dairy cliff
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Posted: 12/27/2012 7:30 PM
Re: The dairy cliff
Government's ethanol policies strike again.  |
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Posted: 12/28/2012 7:17 AM
Re: The dairy cliff
Yep. I have extensive first-hand knowledge of how the ethanol industry and ethanol policies work, and it's shameful stuff. Combine the direct and indirect costs of ethanol laws and regs with various farm subsidies, and the price distortions and inefficiencies are staggering.
On the subject of farmers losing livestock and even farms themselves . . . that's a very unfortunate situation, and I certainly feel for those affected, but I'm not sure I understand why farmers should be treated differently from folks in any other industry when it comes to being protected from market forces. Ethanol mandates and incentives should be eliminated, but IMO so should subsidies. Let the chips fall where they may as a result of market forces (as long as national security isn't adversely affected). It sucks when family farms are lost, but I'm not sure why there should be any more protection afforded to farmers in terms of their ability to continue to keep their properties, jobs and way of life -- even across generations -- than to those in any other industry.
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Posted: 12/28/2012 12:16 PM
Why protect farmers or family farmers?
Depends on if you consider a healthy agriculture and farming industry as strategic to a nation's security. The DOD has added agriculture and sustainable farming as strategic imperatives for global security especially with developing nations. I grew up in farming country; it goes both ways. I'm biased towards the sustainable family farm as part of a viable society. I can also see how policy and subsidies impact markets like the mis-direction of grain crop production for bio-fuel.
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Posted: 12/28/2012 1:27 PM
Re: The dairy cliff
Let me start by saying I know little about milk economics. But I do think lower prices increase consumption and I do recall too many stories about poor families making poor dietary substitutions when commodity prices have escalated.
As long as the subsidies don't permit farmers to profiteer, something apparently not in evidence currently, I like this better than SNAP cards being used in casinos or for cigarettes.
Besides, I drink a lot of milk. Why gore my ox?
Here's a toast with one last pour, may it last forever plus a minute more;
May fortune sing you her sweet song; to live and love way past long
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Posted: 12/28/2012 5:24 PM
Re: Why protect farmers or family farmers?
Should we "protect" family farmers? In a word, no. The crops grown in CA are mostly produced without subsidies. I hope it stays that way. The Midwest is a different kettle of fish, but one which could stand a massive de-linking of crop propagation and gov't intervention. Something along the lines of BC's outline above. Take 8-10 years, but let's get the Feds out of the farming business.
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Posted: 12/29/2012 7:34 AM
Re: The dairy cliff
rjnwmill wrote: Let me start by saying I know little about milk economics. But I do think lower prices increase consumption and I do recall too many stories about poor families making poor dietary substitutions when commodity prices have escalated.
As long as the subsidies don't permit farmers to profiteer, something apparently not in evidence currently, I like this better than SNAP cards being used in casinos or for cigarettes.
Besides, I drink a lot of milk. Why gore my ox? ...or your cow. 
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Posted: 12/29/2012 8:23 AM
Re: The dairy cliff
rjnwmill needs to step up milk consumption as this trend line does not look good for diary farmers  Eric
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Posted: 12/30/2012 7:07 AM
Re: The dairy cliff
82LSJU, thankfully it takes a village to help our family dairy farmers. Over roughly the same time frame, US population is up by 50%; more than enough to offset the 25% per capita consumption decline you highlight. But let me assure you, I am on the case. While I have adjusted my consumption patterns, I am all in with low fat fluid milk, non fat cottage cheese and fat free half & half. Can our family dairy farmers count on your too in 2013?  82lsju wrote: rjnwmill needs to step up milk consumption as this trend line does not look good for diary farmers
Here's a toast with one last pour, may it last forever plus a minute more;
May fortune sing you her sweet song; to live and love way past long
Last edited 12/30/2012 7:08 AM by rjnwmill
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Posted: 12/30/2012 10:01 AM
Potential to be a great purifier of the Republican Party
(And I say this as resident of a state which embraces the less government/less spending rhetoric and then consistently re-elects the same GOP bag-men based on their ability to bring home the bacon.)
But I bet not many of the existing agricultural states conservatives would even dare to vote for, much less participate in crafting, a drop or elimination of crop price supports. But, may I live to see the day of an orderly transition.
"Those are my principles and if you don't like them...well, I have others" Groucho Marx
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Posted: 12/30/2012 5:04 PM
Re: The dairy cliff
I'll eat more ice cream!!!
Eric
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Posted: 12/30/2012 8:15 PM
Re: The dairy cliff
WTF is "fat free half and half"? Isn't the point of half and half that it is half milk and half cream?
BTW, for a real treat, Phillz coffee uses heavy cream as an additive to coffee.
BC |
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Posted: 12/30/2012 9:21 PM
Re: The dairy cliff
A few strange responses on this thread. Sworn "DH"s now like big government if it's paying for milk. Odd, but perhaps predictable. Else, the deficit wouldn't be so hard to cut. |
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Posted: 12/30/2012 10:29 PM
Re: The dairy cliff
I'm pretty well convinced that Philz also uses crack as an additive to its coffee. Their joe is powerful and addictive!
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Posted: 12/30/2012 10:49 PM
SF Coffee
I like Phillz; it is about the only drip coffee that I will drink. It's delicious, but they tend to overcream and sugar. I generally like my coffee pretty close to black and without sugar, so I have to be on top of them that "a little" cream really means only a couple drops. On the other hand, I will occasionally indulge in their mint mojito coffee, which might better be described as mint coffee ice cream. Certainly an indulgence. But Blue Bottle rules the roost for me. Their espresso is, quite simply, a delight. I swear, I could just sit there sniffing the stuff. I know some people are put off by their coffee snobbery (you can't get an espresso to go, for example), but it cuts both ways. I once ordered coffee for a friend who was running late, and when he got there about a half hour later, they insisted on pulling a fresh shot for him. And, even though it is a bit of a crock, I do enjoy getting the occasional gibraltar, if for no other reason than having other people ask me what I'm drinking (it's pretty good too, though would be better served in ceramic). BC
Last edited 12/30/2012 11:02 PM by Boston Card
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Posted: 12/31/2012 12:00 AM
Blue Bottle
Absolutely the best. The Bella Donna single drip cannot be touched. A yogurt shop on Ramona Street in downtown Palo Alto serves it.
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